Oklahoma oil and gas companies with heavy commitments to operations in North Dakota are likely to be paying attention to a growing flap between North Dakota and neighboring state of Minnesota.
Here’s what the flap is about. Earlier this year, Minnesota’s legislature adopted a law that requires the state’s utility provideers to transition to 100% carbon-free electricity sources by 2040. It includes sources brought across state lines, according to a report by the North Dakota Monitor.
As a result, North Dakota leaders fear the Minnesota plan might threaten gas and coal companies in their state. More than half of the electricity generated in North Dakota ends up for out-of-state customers. Most of the power goes to Minnesota.
The law prompted North Dakota leaders to send a letter to the Minnesota governor asking for a modification of the zero-emissions plan. At the same time, North Dakota Gov. Doug Burgum and other state leaders are considering a lawsuit against Minnesota.
It wouldn’t be the first time. North Dakota sued Minnesota over a 2007 law that was similar and ended up struck down by the courts. It barred Minnesota from buying energy from any new out-of-state coal plants. A federal judge ruled the law was unconstitutional because it regulated the economies of other states and the ruling was upheld in the U.S. Court of Appeals for the Eighth Circuit.
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